When it’s time to renew your wireless contract, think twice about your options before you sign on the dotted line. These FAQs will help you figure out whether you’ll benefit from switching to a no-contract plan. How do I know a no-contract plan is best for me?
If you prefer a wide range of services and you like choosing among a variety of phones at low or no cost, a contract with a major carrier is still the best option. But if you can live without some phone choices and fewer perks, a prepaid plan could be a winner.
Is there a downside to a no-contract plan?
The lack of commitment you enjoy with a contract-free plan also works in a carrier’s favor: It can boost rates and change terms anytime. And if you have a prepaid plan and fail to reload your account by the expiration date, you may risk losing your phone number. Also, some plans have extra fees, such as activation charges or daily access charges.
Do I have to wait until the end of my contract to switch?
No. Most carriers now charge a prorated fee when you exit a contract early rather than impose the full fee.
Do I have to pay a lot for a phone with a no-contract plan?
You’ll pay more for a phone than you would if you were signing a contract. The Android-powered LG Optimus S, for instance, was recently $20 from Sprint if you ordered it online and agreed to a two-year contract; the nearly identical LG Optimus V from prepaid service Virgin Mobile had a $200 price tag. But over several months you could pay that cost difference many times over on your service bill if you have a contract.
Will I be able to surf the Web?
Some no-contract plans offer unlimited Web surfing and email in all-in-one plans — voice, text and data — that cost $40 to $80, and that could save you money.
Are service and reception as good with no-contract plans?
That depends. Some no-contract carriers are owned by the wireless giants and operate on their networks. Sprint, for example, owns Boost Mobile and Virgin Mobile. Others, such as MetroPCS, use separate, smaller networks that may have spotty coverage in some areas and charge extra for roaming.
How do I make the switch?
Carriers are required to port a phone number for anyone who stays within a general metropolitan area. Contact your current carrier to ask how best to schedule the move, but don’t cancel your service until you’re set up with the new carrier.
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